Thank you for the help! Now what I'm confused about is do I need to have a specific property in mind before getting financing, or do I put together my business plan and get financing, then find a property?
Thanks for your comments
O.K. for all of those looking for a handout, I am sorry to disappoint you. For those of you serious about trying to secure financing, here are a few tips:
- People and institutions who lend money ask questions. They want to know how they are going to be paid back.
- Don't expect a loan without documenting what you are using it for and how you will pay it back. Paper work sucks, but tough. Do the paperwork.
- If you have bad credit or poor credit you will pay a higher interest rate This is know as risk versus return. That's how it works.
- Private investors generally require 25% or more on a good project with someone with good credit. If you don't fit this profile, you will pay more.
- If a bank will not lend you the money that is your first sign that: You might be a bad credit risk; the bank thinks you might not be able to pay the money back (think about that statement, they are in the business of lending money and they don't want you as a customer!).
- You will pay a higher interest rate somewhere else other than a bank.
- Prepare your documentation prior to talking with ANY lending institute.
- Be prepared and get help if you need it.
- If it sound too good to be true, it probably is.
- Read the fine print - many financing companies charge high fees on top of rates.
- No one in Nigeria is actually going to give you $1 million dollars sight unseen - don't pay the processing fee.
*This is a repost of mine form last year but it seems the board it still active with peopel looking for "free" money so I thought I would repost.